Ocean State Investment Pool - Rhode Islanddata.treasury.ri.gov/dataset/b32b253f-b749-48f8-ac3d-6d3b66782b9… · Market Portfolio, FIMM Prime Reserves Portfolio, FIMM Treasury Only
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Not FDIC Insured May Lose Value No Bank Guarantee
®
Michael Morin, CFA
SVP, Head of Liquidity Management Solutions
Jim Scalisi
VP, Senior Cash Relationship Manager
Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.
Fidelity is prepared and committed to delivering to OSIP
and its participants the best experience
and value in the financial services industry
Investment Management Expertise
Unwavering Commitment to Rhode Island
Best-in-Class Client Experience
What Distinguishes Fidelity Fixed Income?
Team Approach Commitment to Research Risk Management
• Stable and experienced team
• Team has been managing portfolios
since 1992 and asset allocation
strategies since 2000
• A long history of investing through
a variety of market environments
• Independent and proprietary
• Spans the capital structure
• Fundamental research complemented
by macro insights
• 93 research professionals
• Research analysts average 16 years
of industry experience
• Coordination with 184 equity
research professionals
Annually:
• 5,000 in-house meetings
• 13,000 company contacts
• 35,000 research notes
• Focused on delivering competitive
risk-adjusted returns that are
consistent with client expectations
• Integrated and empowered
risk professionals
• Multiple layers of oversight and
risk infrastructure
• Long-term commitment to risk
infrastructure via technology
(i.e., RAPIDS*)
Strategic alignment between Fidelity and our clients.
Investment professionals described include the combined resources of FIAM and Fidelity Investments as of 6/30/18.
Fixed Income professional headcount includes investment-grade and non-investment-grade divisions of FMR.
Equity research professionals include research analysts and associates and reflect the combined resources of FIAM and Fidelity Investments as of 6/30/18.
*Risk Analytics Platform for Investment Decision Support.
For institutional use only. 3
Cash Management Objectives
For institutional use only. 4
Safety
Liquidity
Return
1
2
3
PRIORITIZATION
For illustrative purposes only.
Best-in-Class Client Experience Striving to deliver OSIP the best client experience in the financial services industry
For institutional use only. 5
For illustrative purposes only.
Compelling
Marketing Approach
Fidelity will create a customized
communications strategy using
every point of contact to deliver
program benefits, value-add
educational resources, and
timely updates.
Customer-Obsessed
Client Service
We are an organization that is
customer obsessed and strives
to deliver results. Our success is
directly tied to our clients’
satisfaction.
Seasoned Relationship
Management and
Support Team
OSIP will be supported by a
seasoned team of talented
professionals dedicated to
fostering client relationships and
exceeding expectations.
Client Services
Felicia Dionne, Regional Support Representative, 14 years
Brooke Dillon, Regional Support Representative, 11 years
Eric Leger, Regional Support Representative II, 13 years
Institutional Portfolio Managers
Kerry Pope, CFA, Institutional Portfolio Manager, 29 years
Chris Lewis, Institutional Portfolio Manager, 27 years
Relationship Management and Account Executive Team
Jim Scalisi, VP, OSIP Senior Cash Relationship Manager, 17 years
Michael Morin, SVP, Head of Institutional Liquidity Management, 28 years
TBH - Junior Cash Relationship Manager
Cash Portfolio Management Team
Maura Walsh, CFA, Cash Portfolio Manager, 26 years
Michael Widrig, CFA, Cash Portfolio Manager, 28 years
For institutional use only. 6
OSIP
ELIGIBLE
PARTICIPANTS
Marketing Team
Diana Downey, Senior Vice President, Investment Solutions Marketing, 24 years
Amy E. Greeley, Senior Vice President, Segment and Strategic Content Marketing, 24 years
Candace A. Race, Head of FIAM Marketing, 30 years
As of 9/30/18.
Seasoned Relationship Management and Support Team Bringing together deep OSIP experience with fresh new thinking
Commitment to Rhode Island Facts
7
For institutional use only.
Fidelity has been a part of Rhode Island since 1998, with two Fidelity companies headquartered in the Ocean State –
Fidelity Personal Investments & Fidelity Institutional Asset Management
More than 3,300 Fidelity employees are based in Rhode Island
Operates 1 investor center in Providence
Occupies over 1.1 million square feet of real estate, and 900 Salem Street is the largest office building in the state
(577,000 square feet)
Partner with non-profit organizations committed to financial literacy and improving the lives of Rhode Island youth:
Junior Achievement, Jump$tart Coalition, Teach for American and HandsOn Network
Contributed over 7,000 volunteer service hours to community service projects, education, financial education and other
causes in 2017
Source: Fidelity Investments as of 9/5/18.
Important Information
The information provided herein is general in nature, not individualized, and does not constitute a recommendation. Fidelity is not acting as an
advisor to you and does not owe a fiduciary duty to you with respect to the material contained in any verbal or written communication. Fidelity is
acting for its own interests. You should consult with your advisor prior to making any investment decisions.
Not a deposit of a bank. No guarantee by the State of Rhode Island or the U.S. Government or any of its agencies.
The Ocean State Investment Pool Trust (OSIP) is offered by The State of Rhode Island and managed by FIAM LLC a Fidelity Investments
company. FIAM LLC is an investment adviser registered under the Investment Advisers Act of 1940. Fidelity Investments Institutional Services
Company, Inc. (FIISC), an affiliate of FIAM LLC, is the servicing agent for OSIP. OSIP is not a mutual fund and is exempted from the
Investment Company Act of 1940.
Not NCUA or NCUSIF insured.
May lose value. No credit union guarantee.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the
cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to
change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not
be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as
an indication of trading intent on behalf of any Fidelity fund.
Past performance is no guarantee of future results. Investment return will fluctuate, therefore you may have a gain or loss when you sell
shares. Diversification does not ensure a profit or guarantee against a loss.
Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of
FMR LLC or its affiliated companies. FIAM does not provide legal or tax advice and we encourage you to consult your own lawyer, accountant, or
other advisor before making an investment.
Chartered Financial Analyst (CFA) designation is offered by the CFA Institute. To obtain the CFA charter, candidates must pass three exams
demonstrating their competence, integrity, and extensive knowledge in accounting, ethical and professional standards, economics, portfolio
management, and security analysis, and must also have at least four years of qualifying work experience, among other requirements.
Not FDIC insured. May lose value. No bank guarantee
8 For institutional use only
FIAM-BD
852574.3.0
Appendix
For institutional use only.
Biographies
Michael Morin, CFA
Head of Liquidity Management Solutions
Michael Morin is a senior vice president and head of liquidity management solutions at Fidelity Institutional Asset Management® (FIAM®),
Fidelity Investments’ distribution and client service organization dedicated to meeting the needs of consultants and institutional investors, such
as defined benefit and defined contribution plans, endowments, and financial advisors.
In this role, Mr. Morin is responsible for the delivery, implementation, and oversight of the institutional liquidity management solutions product
line for FIAM. Additionally, he is responsible for managing a team of institutional sales and relationship management professionals responsible
for developing strategic alliances with banks, broker-dealers, and corporations, public sector, higher education, non-profit, and other institutions
to meet their clients’ cash management and short-term investment needs.
Prior to assuming his current position, Mr. Morin was a director of institutional portfolio management within the Fixed Income division at Fidelity.
Before joining Fidelity in 2008, Mr. Morin spent ten years at JP Morgan Chase Bank, N.A., as a managing director in their Worldwide Securities
Services division. Mr. Morin began his career at The Bank of New York Mellon in the securities lending division. He has been in the financial
industry since 1990.
Mr. Morin earned his bachelor of science degree in finance and quantitative methods from Syracuse University and his master of business
administration degree from Fordham University. He is also a CFA charterholder.
Jim Scalisi
Vice President
Jim Scalisi is a vice president in the Fidelity Institutional Liquidity Management Solutions (FILMS) group at Fidelity Institutional Asset
Management® (FIAM®), Fidelity Investments’ distribution and client service organization dedicated to meeting the needs of consultants and
institutional investors, such as defined benefit and defined contribution plans, endowments, and financial advisors.
In this role, Mr. Scalisi is responsible for the growth and development of FIAM’s corporation, hedge fund, higher education, tax-exempt,
government, endowments, and other financial institution partnerships in the northeastern part of the United States.
Prior to assuming his current position, Mr. Scalisi held a variety of roles within Fidelity, most recently as senior regional investment consultant,
supporting key bank and broker-dealer institutional money market relationships. Previously, Mr. Scalisi was an account manager in Fidelity’s
institutional client services division. He has been in the financial industry since 2001.
Mr. Scalisi earned his bachelor of science degree in marketing from the University of Massachusetts. He also holds the Financial Industry
Regulatory Authority (FINRA) Series 7 and 63 licenses.
For institutional use only. 10
Biographies
Maura Walsh, CFA
Portfolio Manager
Maura Walsh is a portfolio manager in the Fixed Income division at Fidelity Investments. Fidelity Investments is a leading provider of
investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing, and other financial products and services to
more than 26 million individuals, institutions, and financial intermediaries.
In this role, Ms. Walsh manages Fidelity Money Market Fund and Fidelity Treasury Only Money Market Fund. She also co-manages Fidelity
Conservative Income Bond Fund, Fidelity Flex Conservative Income Bond Fund, Fidelity Investments Money Market (FIMM) Prime Money
Market Portfolio, FIMM Prime Reserves Portfolio, FIMM Treasury Only Fund, Ocean State Investment Pool, and North Carolina Capital
Management Trust – Government and Term Portfolios.
Prior to assuming her current portfolio management responsibilities, Ms. Walsh managed Fidelity Series Government Money Market Fund.
Previously, she was a trader on the taxable money market desk and a client service representative for Fidelity Investments Institutional
Services Company.
Before joining Fidelity, Ms. Walsh was a trust assistant at Fiduciary Trust Company (FTC). She has been in the financial industry since 1992.
Ms. Walsh earned her bachelor of arts degree in mathematics from the College of the Holy Cross. She is a CFA® charterholder.
CIO Robin Foley, CFA, 32 years experience Tim Huyck, 31 years
Portfolio
Managers
David DeBiase, CFA, 23 years experience Kevin Gaffney, 26 years Rob Galusza, 33 years Rob Mandeville, CFA, 11 years
Doug McGinley, 28 years Elizah McLaughlin, CFA, 19 years Andy Messier, CFA, 23 years Julian Potenza, CFA, 14 years
Maura Walsh, CFA, 26 years Michael Widrig, CFA, 28 years
Institutional
Portfolio
Managers
Christopher Lewis, 27 years Kerry Pope, CFA, 29 years experience
Quantitative
Analysts Shawn Verbout, Ph.D, 31 years experience Prashant Kharade, 14 years Akash Vallecha, 19 years
Liquidity Management Solutions Team Dedicated and experienced team offering diverse strategies
$611B Total AUM
$415B $138B* $35B $23B*
Fidelity Assets Under Management (AUM) noted as of June 30, 2018. Dedicated resources as of 9/30/18.
*Prime is comprised of registered and non-registered money market funds. Liquidity Management Solutions include other registered and non-registered short-duration funds.
23 For institutional use only.
Elements of Minimal Credit Risk Analysis
For institutional use only. 24
Liquidity
Determination
Credit and Cash Flow
Analysis
Management
Review
Macroeconomic
Analysis
Legal
Review
In a short-term payment
horizon, internal and
alternative sources of
liquidity are critical
Revenue streams, capital
intensiveness, fiscal
spending, debt load, interest
rate sensitivity, quality of
assets, and nature
of liabilities
Accessibility to
management, quality and
sophistication of
management team, financial
statements, disclosure,
compensation, and
governance practices
Operating environment,
industry dynamics,
competitive positioning,
economic climate
Legal analysis of structural
features and covenants
associated at issuer,
program , and security levels
to ensure structure delivers
intended exposure
Minimal Credit Risk Determination
For illustrative purposes only.
Breakdown of the Approved List
M-Score Approved Issuers
M1 24
M2 99
M3 148
M4 160
M5 41
Total: 472
Approved list is diversified across sector and credit quality.
M1 Multiple offsets to buffer possible blows to financial strength 397 ~$25,000
M2 187 to 277
M3 97 to 187
M4 37 to 127
M5 Fewer layers of credit/liquidity provided via Banks/Guarantors 7 to 37 ~$1,000
For institutional use only. 25
*Dollar and Maturity Guidelines are used for representative purposes and may not represent actual limits
Source: Fidelity Investments as of 6/30/2018.
Cash Management Investment Process Shared team responsibility, lead portfolio manager makes final investment decision
For institutional use only. 26
Portfolio Management
Portfolio strategy and
construction
Risk management
Investment decision-making
responsibility
Specialized Trading
Dedicated traders
specialized by sector
Market surveillance and
trade execution
Tactical perspective on
portfolio construction
Credit Research
Fundamental analysis
and relative valuation
Independent research
Integrate analysis
across equity, bond, and
international
research teams
Quantitative Research
Measure and understand
risk exposures
Proprietary modeling
Valuation of securities
and embedded
demand features
PORTFOLIO
CONSTRUCTION
Quantitative Research Framework
For institutional use only. 27
Risk Management:
Intensive Stress Testing of
the $1.00 NAV
Relative Value Framework
at the Portfolio and
Security Level
Proprietary Models and
Internally Customized
Programs
• Scenario analysis allows NAV
impact analysis of shocks to
interest rates, credit spreads,
and shareholder flows
• Shareholder flow models allow
quantitative assessment of
liquidity adequacy
• Large-scale simulation helps
determine optimal portfolio
structure
• Breakeven analysis aids in
comparing various
investment options
• PROPHET: Money market
analytics monitor and scenario
analysis engine
• Armanta: Customized portfolio
exposure monitor
• Investment tools warehouse:
Collection of prototype
applications tailored to emerging
business needs
Fidelity’s Fixed Income
Quantitative Research Team
was founded in 1992 and a team
dedicated to Money Markets
formed in 1998
Key areas of contribution:
• Risk management
• Relative value analysis
• Proprietary model development
For illustrative purposes only.
24%
12%
22%
4%
6%
11%
1%
18%
3%
North American Banks
Asian/Australian Banks
Eurozone Banks
Nordic/Swiss Banks
UK Banks
Asset Backed CP
Non-Traditional Repo
Government/Repo
Finance Companies
Net Other Assets*
Ocean State Investment Pool Composition
Portfolio diversification is presented to illustrate examples of the securities that each fund has bought and may not be representative of a fund’s current or
future investments. Each fund’s investments may change at any time. Percentages may not add up to 100 due to rounding.
*Net Other Assets may include cash and receivables and payables related to open security or capital stock trades.
Source: Fidelity Investments as of 9/30/2018.
28 For institutional use only.
SEPTEMBER 30, 2018
Portfolio Characteristics
Net Assets $465 Million
Weighted Average Maturity (WAM) 18 Days
Weighted Average Life (WAL) 42 Days
Ocean State Investment Pool Historical NAV & Weekly Liquidity
29 For institutional use only.
$0.9950
$0.9975
$1.0000
$1.0025
$1.0050
Se
p-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan
-18
Fe
b-1
8
Ma
r-18
Ap
r-18
Ma
y-1
8
Jun
-18
Jul-1
8
Au
g-1
8
Se
p-1
8
MARKET VALUE NAV
WEEKLY LIQUIDITY (%)
0
10
20
30
40
50
60
70
Se
p-1
7
Oct-
17
Nov-1
7
Dec-1
7
Jan
-18
Fe
b-1
8
Ma
r-18
Ap
r-18
Ma
y-1
8
Jun
-18
Jul-1
8
Au
g-1
8
Se
p-1
8
Source: Fidelity Investments as of 9/30/2018.
Performance Review as of September 30, 2018
For institutional use only. 30
7-Day SEC
Yield
Annualized
7-Day SEC
Yield
Without
Reductions
Cumulative Annualized
3-Month 6-Month 1-Year 3-Year 5-Year 10-Year
Since OSIP
Inception*
Ocean State Investment Pool 2.07% N/A 0.52% 0.99% 1.69% 1.03% 0.66% - 0.53%
FTSE 3-Month Treasury Bill Index - - 0.50% 0.94% 1.57% 0.80% 0.49% 0.32% 0.39%
Value Added (FTSE 3-Month Treasury Bill Index) 0.02% 0.05% 0.12% 0.23% 0.17% - 0.14%
Value Added (iMoneyNet Prime Institutional Category) 0.04% 0.06% 0.18% 0.23% 0.17% - 0.14%
Current performance may be higher or lower than that quoted.
*Annualized return since fund inception date of March 6, 2012
Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any.
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value
will fluctuate, so you may have a gain or loss when shares are sold. Index performance is not meant to represent that of OSIP.
The 7-Day SEC yield is the average income return over the previous seven days, assuming the rate stays the same for one year. It is the Pools total
income net of expenses, divided by the total number of outstanding shares and includes any applicable waiver or reimbursement. Absent such waivers
or reimbursements, the returns would have been lower. The 7-Day SEC Yield Without Reductions is the yield without applicable waivers or reimbursements.
Voluntary waivers and/or reimbursements may be discontinued any time.
The yield quotation more closely reflects the current earnings of the Ocean State Investment Pool than the total return quotation.
Best-in-Class Client Experience
For institutional use only.
Fidelity’s Workforce Standards Our talented workforce comes to work each day with a passion to do its best for
Fidelity’s customers
For institutional use only. 32
Responsibility
Making sound judgments
for the long term and in our
customers’ best interests
Integrity
Acting in good faith and
taking pride in getting
things just right
Compassion
Treating every moment
as an opportunity to
improve people’s lives
Expertise
Using our insights to
drive confidence, clarity,
and results
OSIP Technology Improvements
For institutional use only. 33
For illustrative purposes only.
OSIP Technology Improvements
For institutional use only. 34
For illustrative purposes only.
Compelling Marketing Approach Driving participant engagement and satisfaction
35
Engage, inform, and educate
OSIP participants with
actionable reference
resources and relevant
timely updates
Drive increased OSIP
participation through
proactive communications
and events that drive interest
and enrollment
Provide superior website
experience with comprehensive
information, intuitive navigation,
and a streamlined transactional
interface
• Investment Circular provides
comprehensive plan details in
multi-page brochure and digital
formats
• Quarterly Investment Overview
keeps participants on top of
plan performance
• Quarterly Commentary gives
perspectives on the market
environment
• Updates are sent proactively to
plan participants and featured
on custom website homepage
• Quarterly targeted promotional
emails deliver plan benefits and
investment insights to prospective
participants
• Proactive commentary and industry
event sponsorships creates ongoing
awareness
• Local conference participation (e.g.,
RI League of Cities and Towns, RI
GFOA) engages current and
prospective participants
• Website features plan benefits and
latest insights
• Custom site provides secure
platform for processing
transactions, and accessing
account information and
informational resources
• Key OSIP Fidelity Team contact
information on homepage
• Seamless access to
educational, thought leadership,
and marketing resources
• Important OSIP and relevant
market updates featured on
website homepage
For institutional use only.
For illustrative purposes only.
Customer Obsessed Client Service Providing the world class service clients expect and deserve
For institutional use only. 36
• Dedicated team of empowered associates located
in Smithfield, RI
• Demonstrate ownership & creative problem solving
• Focused on “ease of doing business”
• Service level: 91.5% (calls answered within
30 seconds)
• Transaction quality: 99.3%
Be customer obsessed Listen to customer needs, own any issue, and